Economics (AS & A Level) · Oct / Nov 2025 · Paper 34 · Question 25
9708Effectiveness of policy options to meet all macroeconomic objectives
What does the Laffer curve show?
- Athe amount of tax revenue received at each tax rate
- Bthe impact on the distribution of income after tax rates rise
- Cthe rise in inflation following a fall in unemployment due to a cut in income tax
- Dthe rise in poverty due to a rise in the basic rate of income tax
As printed in the paper
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Correct answer: A. the amount of tax revenue received at each tax rate
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